Bank Austria Creditanstalt, a unit within the UniCredit Group responsible for commercial banking activities in central and eastern Europe, has agreed to acquire around 95% of the share capital of Ukrsotsbank in Ukraine from a group of investors represented by Interpipe Group.

Under the terms of the deal, Bank Austria Creditanstalt (BA-CA) will pay a total purchase price of $2.07 billion for the 95% shareholding in Ukrsotsbank (UBS), plus an amount equal to the recent capital increase, which is currently estimated at around $130 million, to be subscribed for by USB’s existing shareholders before completion of the transaction. The transaction will be financed entirely from BA-CA’s existing cash resources.

The acquisition of UBS will reinforce the group’s presence in the rapidly growing Ukrainian market. UniCredit is already present in the region through its subsidiaries HVB Ukraine and UniCredit Bank.

Following the recent announcement of the acquisition of ATF Bank in Kazakhstan, this transaction represents a further step by the UniCredit Group to strengthen its leadership in the CEE/CIS area.

The transaction is anticipated to close in the final quarter of 2007, and is subject to regulatory approvals.